VeriSign is under investigation by the US Federal Trade Commission (FTC) after competitors accused it of using shady business practices to lure customers.
According to its accusers, VeriSign, with a strong brand name as a registry and registrar, has been able to trick customers, even those somewhat knowledgeable, to switch their businesses to one of the expensive companies on the market, by mistake.
The tactics allegedly used by VeriSign is referred to as ‘slamming’, deriving from the banned long-distance phone company practice of misleading users into switching providers.
The FTC is also investigating the company’s relationship with Interland, a web host company based in Atlanta (Georgia), on the grounds of similar allegations, according to reports by Reuters. Interland has been a long-time domain name reseller for VeriSign.